Which of the following methods of amortization is a company most likely to use for financial statement purposes if it purchases a patent?
A)Capital cost allowance
B)Double-declining-balance
C)Units-of-activity
D)Straight-line

Question

Quizplus · Accepted Answer

Straight-line amortization is the most commonly used method for financial statement purposes as it is easy to calculate and results in a consistent expense each period. This method allocates the cost of the patent evenly over its useful life.

Which of the Following Methods of Amortization Is a Company